Business Tax Audits in Ukraine

Business tax audits: types, grounds, documents, RRO/PRRO, fines and protection procedure

As of July 2026, there is no general moratorium on tax audits of businesses in Ukraine. The State Tax Service has the right to conduct desk audits, scheduled and unscheduled documentary audits, as well as factual audits. Special restrictions apply to certain taxpayers and business facilities located in areas of hostilities or temporary occupation, but they depend on the tax address, the location of the facility, the date when the territory was included in the official list, and the exceptions provided by law. The schedule of scheduled documentary audits for 2026 is in effect and was adjusted by the State Tax Service on June 26, 2026.

The best protection for an entrepreneur is not a formal refusal to undergo an audit, but systematic readiness: properly prepared primary documents, tax and accounting reports, confirmed origin of goods, correct operation of RRO/PRRO, up-to-date data on business facilities, properly employed staff and valid licences. During an audit, it is necessary to check the legal grounds, order, assignment and inspectors’ IDs, record the subject and period of the audit, transfer documents under an inventory list and challenge unlawful conclusions in due time.

What tax audits the State Tax Service may conduct

The Tax Code provides for three main types of audits: desk, documentary and factual. Documentary audits are further divided into scheduled and unscheduled, on-site and off-site audits.

Desk audit

A desk audit is conducted without a separate order from the head of the State Tax Service, without an assignment, without the entrepreneur’s consent and without the entrepreneur’s mandatory presence. The audit covers tax reporting data and information already contained in the systems of the State Tax Service, including data from electronic VAT administration, registers of tax and excise invoices, and the RRO data accounting system.

As a result of a desk audit, the State Tax Service may identify, in particular:

• late submission of reports;

• errors or discrepancies in declarations;

• violation of deadlines for registering tax or excise invoices;

• late payment of agreed tax liabilities;

• discrepancies between reporting data and information systems.

The absence of an inspector at the entrepreneur’s premises does not mean that an audit is not being conducted. Therefore, it is necessary to regularly monitor the Electronic Cabinet, tax notices and the status of submitted reports.

Is there a moratorium on tax audits during martial law

Martial law does not mean an automatic ban on all tax audits. A general moratorium for all businesses is not in effect. At the same time, the Tax Code establishes special restrictions for certain territories and taxpayers.

The temporary moratorium under subparagraph 69.35¹ of subsection 10 of section XX of the Tax Code applies, in particular:

• to documentary audits of taxpayers whose tax address, as of the start date of temporary occupation, active or possible hostilities, belonged to the relevant territory;

• to factual audits at the location of facilities that, as of the start date of occupation or hostilities, were located in the relevant territory.

The law provides exceptions under which certain audits may still be conducted. Therefore, the inclusion of a locality in the official list should not be treated as an unconditional prohibition of any audit.

For a documentary audit, what matters is the taxpayer’s tax address as of the start date of the relevant circumstances. Moving the tax address to such a territory after its inclusion in the list does not in itself create a right to the moratorium. For a factual audit, the location of the business facility is important.

The list of territories where hostilities are or were conducted, or which are temporarily occupied, was approved by Order No. 376 of the Ministry for Communities and Territories Development of Ukraine dated February 28, 2025. Before applying a benefit or moratorium, it is necessary to check the current version of the List and the dates specified in it.

In addition, documentary and factual audits during martial law may be conducted only if safe conditions exist for:

• access to territories, premises and property;

• access to documents and tax information;

• conducting an inventory of property, goods, funds and taking stock balances.

Special rules for documents lost or left in occupied territories

Subparagraph 69.28 of subsection 10 of section XX of the Tax Code establishes a separate mechanism for taxpayers who conducted activities in areas of active hostilities or temporarily occupied territories and cannot provide primary documents.

The grounds may include:

• destruction, damage or loss of documents due to hostilities;

• documents being located in the relevant territory if they cannot be removed;

• danger to life or health during removal;

• administrative obstacles to access or evacuation of documents.

The taxpayer submits a free-form notification to the State Tax Service. For a legal entity, it is signed by the head and the chief accountant. The notification specifies:

• the circumstances of the loss or impossibility of removal;

• the relevant tax periods;

• a general list of documents;

• where possible — the details of the documents.

The notification may be submitted through the «Correspondence with the State Tax Service» menu of the Electronic Cabinet to the State Tax Service authority at the main place of registration, or on paper through an operating taxpayer service centre, personally, through a representative or by mail with delivery confirmation and an inventory of enclosures.

Submitting a substantiated notification has important consequences:

• reporting indicators may not be questioned solely because of the absence of primary documents;

• declared expenses, negative values and tax credit are preserved within the rules of subparagraph 69.28;

• special protection from documentary audits is established for the specified periods;

• if a notification of document loss is submitted, the relevant periods are not subject to audit even after martial law ends.

This mechanism does not apply to the loss of documents unrelated to hostilities or occupation. Unfounded use of the special procedure entails liability provided by law. A refusal by the State Tax Service must be reasoned and may be appealed.

Scheduled documentary audit

A scheduled audit is conducted according to the annual schedule of the State Tax Service. The schedule includes taxpayers whose activities contain identified tax risks. The procedure for forming the schedule and the risk criteria are established by Order No. 524 of the Ministry of Finance of Ukraine.

The frequency of inclusion depends on the degree of risk:

The schedule for the following year is published by December 25 of the previous year. The law allows it to be adjusted: changes may be made no more than once in the first and once in the second quarter, except for technical corrections. For new taxpayers added during adjustment, separate restrictions apply to the earliest possible audit start date.

For 2026, the State Tax Service published the schedule and on June 26, 2026 posted adjusted sections concerning legal entities, financial institutions and representative offices of non-residents, individuals, as well as audits of personal income tax, military levy and unified social contribution.

Before the start of a scheduled audit, the taxpayer must be sent or served no later than 10 calendar days in advance:

• a copy of the audit order;

• a written notice specifying the start date.

After receiving the notice, it is necessary to immediately:

1. check the details of the company or individual entrepreneur;

2. check the period and subject of the audit;

3. find yourself in the current version of the schedule;

4. prepare a list of documents for each tax and period;

5. check submitted reports, primary documents and accounting registers;

6. appoint responsible employees and a representative;

7. prepare a written procedure for interaction with inspectors.

Unscheduled documentary audit

An unscheduled audit is not included in the annual schedule. It may be appointed only on the grounds directly provided by the Tax Code. The list of such grounds is exhaustive and is contained in paragraph 78.1 of Article 78.

Common grounds include:

• receipt of tax information indicating possible violations and failure by the taxpayer to provide proper explanations and documents in response to a lawful request;

• detection of unreliable data in a declaration and failure to provide explanations;

• failure to submit a tax declaration or other mandatory reporting;

• submission of an adjustment calculation for a period that has already been audited;

• submission of objections to an audit report or a complaint referring to new circumstances that cannot be examined without an audit;

• termination, reorganisation or bankruptcy of the taxpayer in cases defined by law;

• audit of claimed budget reimbursement or negative VAT value in cases provided by law;

• failure to provide information for a cross-check;

• grounds related to transfer pricing, multinational enterprise groups, controlled foreign companies and automatic exchange of information.

Not every letter from the State Tax Service automatically creates grounds for an unscheduled audit. It is necessary to check:

• whether the State Tax Service has legal grounds for the request;

• whether factual circumstances and information about a possible violation are specified;

• which specific documents are requested;

• whether they relate to the subject of the request;

• which response deadline is established by the specific rule.

For some grounds under Article 78, the deadline for submitting explanations and documents is 15 working days from the day following receipt of the request. Other procedures may have different deadlines, for example 10 working days for certain requests for a cross-check. Therefore, the deadline must be determined according to the specific subparagraph indicated by the State Tax Service.

It is advisable to prepare the response to the request as follows:

• a separate letter referring to the request number and date;

• explanations for each question;

• a list of attached documents;

• an inventory of copies with the number of sheets;

• confirmation of dispatch or delivery.

Ignoring a properly issued request may create independent grounds for an unscheduled audit.

Off-site documentary audit

An off-site audit is conducted at the premises of the State Tax Service. For an unscheduled off-site audit, there must be:

• a decision by the head, deputy head or authorised person of the State Tax Service;

• an order;

• a copy of the order served on or sent to the taxpayer;

• a written notice of the start date and place of the audit.

The entrepreneur’s presence during an off-site audit is not mandatory. At the same time, the taxpayer has the right to submit documents, explanations and objections. Upon the taxpayer’s written request, in the case provided by the Tax Code, an on-site audit may be conducted instead of an off-site audit.

A notice of an off-site audit must not be ignored. The entrepreneur’s absence from the premises of the State Tax Service does not stop the audit.

Factual audit

A factual audit is conducted without prior notice at the place of actual activity or the location of the business facility.

During such an audit, the State Tax Service may check:

• settlement transactions;

• use of RRO and PRRO;

• issuance of fiscal receipts;

• cash operations and cash circulation;

• availability of licences required by law;

• production, accounting, storage, transportation and sale of excisable goods;

• formalisation of employment relations;

• actual admission of employees to work;

• other matters expressly assigned by law to the competence of the State Tax Service.

Grounds for a factual audit may include, in particular:

• results of audits of other taxpayers indicating possible violations;

• information from state authorities or local self-government bodies;

• a written complaint from a buyer or consumer;

• absence of mandatory reporting on RRO/PRRO or submission of such reporting with zero indicators in cases provided by law;

• information about possible violations in the field of alcohol, tobacco, liquids for electronic cigarettes or fuel;

• repeat control over a previously established violation within the period defined by law;

• information about unregistered employees, payment of wages without proper taxation or activity without state registration.

Before starting a factual audit, inspectors may conduct a test settlement transaction.

A shop employee, cashier or administrator must know the internal action algorithm:

1. notify the manager and the responsible person;

2. ask the inspectors to present the documents required by law;

3. not obstruct the recording of lawful actions;

4. not provide unverified oral explanations on behalf of the business;

5. not sign documents without reading them;

6. record comments in writing.

What documents inspectors must present

Lawful grounds and properly executed documents are required to start an on-site documentary or factual audit.

The requirements for the details of the assignment and order are defined by Article 81 of the Tax Code.

It is advisable to make copies or photos of the documents, record the date and time of the inspectors’ arrival, their surnames and positions.

Failure to present the required documents or their execution in violation of the Tax Code may be grounds for refusing admission. At the same time, refusal on grounds not provided by law is not allowed. A decision to refuse admission must be legally justified, since it may trigger separate tax procedures and a dispute.

Refusal only to sign the assignment does not stop the audit. Inspectors draw up a report on refusal to sign, after which they may start the audit.

A signature on the assignment confirms familiarisation with the document, not agreement with all actions of the State Tax Service. If there are comments, it is advisable to set them out in writing.

Audit duration

The duration depends on the type of audit and the taxpayer category.

Scheduled documentary audit

Unscheduled documentary audit

Factual audit

A factual audit must not exceed 10 days. Its duration may be extended by no more than 5 days if there are grounds provided by law, including an entrepreneur’s request for the need to provide documents or a shift-based or summarised working regime.

If the taxpayer submits documents less than three working days before the end of the audit, the duration may be extended according to the procedure defined by the Tax Code.

What documents a business needs to prepare

The list depends on the type of activity, taxation system, subject and period of the audit. Documents must confirm not only the fact of a transaction, but also its economic substance, volume, value, movement of assets, payment and reflection in accounting.

Registration and organisational documents

Check:

• the relevance of information in the Unified State Register;

• the authority of the manager;

• orders appointing responsible persons;

• powers of attorney of representatives;

• KVED activity codes, if they matter for the tax regime or licensing;

• tax status and VAT payer registration;

• documents concerning the selected taxation system.

Accounting and tax records

Prepare:

• tax declarations and calculations;

• financial statements;

• accounting registers;

• trial balance statements;

• the general ledger, if maintained;

• accounting policy;

• tax invoices and adjustment calculations;

• excise invoices — if relevant transactions exist;

• documents concerning tax differences;

• calculations of taxes, fees and unified social contribution;

• payment confirmations.

Before the audit begins, it is necessary to reconcile declaration indicators with accounting records, bank statements, RRO/PRRO, warehouse data and primary documents.

Contracts and primary documents

For each significant counterparty or transaction, prepare a complete documentary chain:

1. contract and annexes;

2. order or specification;

3. invoice;

4. delivery note, act or other transfer document;

5. transportation documents — if required by law or the terms of the transaction;

6. payment documents;

7. documents on recognition of goods or assets;

8. documents concerning further use or sale of the goods.

The documents must be consistent in terms of:

• names of the parties;

• tax details;

• date;

• item description;

• quantity;

• price;

• total amount;

• taxes;

• place of transfer;

• signatures or proper electronic signatures.

Documents should not be created or corrected retroactively. If an error is identified, it must be corrected in the manner prescribed by law while preserving the history of changes.

Goods, warehouse, storage and delivery

For a goods-based business, it is advisable to have:

• documents on the purchase or production of goods;

• delivery notes;

• customs documents — for import operations;

• warehouse documents;

• stock balance data;

• inventory lists;

• internal transfer documents;

• return, write-off and markdown documents;

• delivery documents;

• goods transport documents — in cases where their execution is mandatory or follows from the transportation terms;

• documents confirming the right to use the warehouse;

• documents on marking, traceability, certification or conformity — if required by special legislation for specific products.

Actual stock balances must correspond to warehouse and accounting records. Discrepancies must be explained by documents: returns, transfers, write-offs, inventory differences or other proper transactions.

Premises and Form No. 20-OPP

The taxpayer submits information on taxable objects or objects through which activities are carried out using Form No. 20-OPP. It is necessary to report owned, leased and subleased objects. The deadline for submitting information on the creation, opening or registration of an object is 10 working days.

Check the consistency of the following data:

• the address in the lease agreement or ownership document;

• the name of the business unit;

• information in Form No. 20-OPP;

• RRO/PRRO data;

• the address in the licence;

• the place of storage of goods;

• the actual place of business activity.

Mismatch of addresses in documents may lead to additional questions during an audit and create risks for RRO/PRRO registration or licensed activity.

Employees

An employee may not be admitted to work without:

• a formalised employment contract;

• an order or instruction on hiring;

• notification to the State Tax Service of the employee’s hiring in the established procedure.

Prepare for the audit:

• employment contracts;

• orders on hiring, transfer and dismissal;

• notifications to the State Tax Service and receipts confirming their acceptance;

• staffing schedule;

• working time records;

• documents on wage accrual and payment;

• information on personal income tax, military levy and unified social contribution;

• civil law contracts — if they actually regulate the performance of a specific result and do not conceal employment relations.

During a factual audit, the State Tax Service assesses not only the existence of a contract, but also the real circumstances of work: schedule, subordination, workplace, systematic performance of functions, payment of remuneration and other indicators.

RRO and PRRO: what to check before the State Tax Service arrives

The obligation to use RRO or PRRO depends on the type of settlement transaction, activity and special exceptions provided by Law No. 265/95-VR. One should not rely only on the single tax group: the right not to use RRO/PRRO is determined by the combination of legal conditions.

Before the audit, it is necessary to make sure that:

• the RRO or PRRO is registered to the proper business unit;

• the address corresponds to the premises documents and Form No. 20-OPP;

• settlement transactions are carried out for the full amount;

• the buyer receives a paper or electronic fiscal receipt;

• the product nomenclature corresponds to the actual assortment;

• quantity, price, tax rate and amount are specified correctly;

• refunds are processed correctly;

• cash deposits and cash withdrawals are documented in the required cases;

• actual cash corresponds to accounting data;

• cashiers work with proper access rights;

• backup procedures in case of technical failures comply with the law.

A fiscal receipt must contain mandatory details, including the name of the entrepreneur or company, the name and address of the business unit, tax details, the name of the goods or service, quantity, price and other data provided by Regulation No. 13. The name and address of the business unit must correspond to the premises documents and Form No. 20-OPP data.

For excisable goods, additional requirements apply to programming and receipt details, including the product subcategory code under the Ukrainian Classification of Goods for Foreign Economic Activity, tax indicators and excise tax stamp data in cases defined by law.

For violations provided by paragraph 1 of Article 17 of the RRO Law, standard financial sanctions have applied since August 1, 2025:

• 100% of the value of goods, works or services sold with a violation — for the first violation;

• 150% of the value — for each subsequent violation.

Licences and excisable goods

Businesses working with alcoholic beverages, tobacco products, liquids for electronic cigarettes, fuel, alcohol or other products subject to special regulation must check the requirements of Law of Ukraine No. 3817-IX. The previous Law No. 481/95-VR has expired, so relying only on the old rules is not possible.

Before a factual or documentary audit, check:

• whether the required type of licence has been granted;

• whether the licence is reflected in the relevant register;

• whether the actual activity corresponds to the licence type;

• whether the addresses of places of activity and storage correspond to the information in the registers;

• whether the necessary RRO/PRRO and business facilities have been entered;

• whether regular licence payments have been made on time;

• whether the goods comply with marking requirements;

• whether there are documents on origin, purchase, transportation and storage;

• whether special accounting and reporting rules are observed;

• whether changes to licence information have been submitted on time.

Law No. 3817-IX uses the concept of «termination of licence validity». The full list of grounds is contained in part two of Article 46 and depends on the type of activity. One of the expressly provided grounds is non-payment of the next licence payment.

As a general rule, a decision to terminate a licence takes effect on the second working day after the day it is sent to the taxpayer. Such a decision may be appealed.

For other licensed types of business activity, the Law of Ukraine «On Licensing of Types of Business Activity» and the special law of the relevant sector must be applied.

How to provide documents during an audit

After an audit begins, the taxpayer is obliged to provide documents that belong or relate to its subject. At the same time, inspectors must not go beyond the subject, period and legal grounds of the audit.

Recommended procedure:

1. obtain a written list of required documents;

2. check each item against the subject and period of the audit;

3. prepare copies;

4. certify them with the signature of an authorised person and a seal, if used;

5. prepare a cover letter;

6. prepare an inventory with names, dates, numbers and number of sheets;

7. obtain confirmation of acceptance.

An inspector’s request to obtain certified copies under Article 85 of the Tax Code must be submitted no later than five working days before the end of the audit.

Receipt of copies is documented by an inventory. A copy of the inventory must be handed to the taxpayer or their representative.

Original documents may be provided for review in the manner prescribed by law, but tax inspectors are prohibited from seizing originals of primary, accounting, financial and business, and other documents. Exceptions may apply under criminal procedure rules, not during an ordinary tax audit.

It is not recommended to:

• transfer documents without an inventory;

• hand over originals without legal grounds;

• provide documents unrelated to the subject of the audit without analysing the demand;

• sign an incomplete or inaccurate inventory;

• leave written demands unanswered;

• transfer the only copy of an important document.

Failure to provide documents confirming declared indicators may, as a general rule, be treated as their absence at the time of preparing the relevant reporting. Exceptions are provided, in particular, for cases where documents are seized by law enforcement or other competent authorities.

Document retention periods

The Tax Code establishes minimum retention periods. They depend on the type of document and the taxpayer category.

For self-employed persons and other documents, the relevant category of Article 44 of the Tax Code applies.

The periods are calculated according to paragraph 44.3 of the Tax Code. They may be extended for the period of suspension of limitation periods in cases provided by law. If an audit, administrative appeal or court dispute is ongoing, documents related to the subject of the dispute must not be destroyed until the relevant procedures are finally completed.

To protect the business, it is advisable to keep:

• a paper archive;

• electronic copies of documents;

• backup copies of accounting databases;

• backup copies of RRO/PRRO and warehouse accounting data;

• protected backups outside the main office;

• a log of backup restoration and verification.

Backup copying does not replace a mandatory primary document, but it reduces the risk of losing evidence and business downtime.

What to do in case of ordinary loss or damage to documents

If documents are lost, damaged or prematurely destroyed outside the special procedure of subparagraph 69.28, paragraph 44.5 of the Tax Code applies.

The taxpayer must:

1. within five days from the date of the event, notify the State Tax Service authority in writing;

2. provide properly executed documents confirming the circumstances of the event;

3. restore the documents within 90 calendar days from the day following receipt of the notification by the State Tax Service.

Evidence may include police documents, State Emergency Service documents, commission acts, documents about an accident, damage to premises, a cyberattack or another event — depending on the factual circumstances.

The mere fact of loss does not mean automatic exemption from an audit or tax liability. It is necessary to complete the notification procedure and take real measures to restore the documents.

Main financial risks

The fine under paragraph 121.1 of the Tax Code is UAH 1,020, and for a repeated similar violation within a year — UAH 2,040.

For certain individual entrepreneurs who are single tax payers of the first and second groups, as well as the third group without VAT, paragraph 121.1 provides an exception regarding the fine specifically for failure to keep primary documents confirming expenses for the purchase of goods or services. This does not cancel other accounting, goods-related, RRO or documentary obligations.

There is no single universal percentage of a fine for all tax assessments. The amount depends on the specific article of the Tax Code, the type of tax, the nature of the violation, recurrence, fault and other legal conditions.

How to behave during an audit

1. Appoint a responsible person

Designate a person who:

• meets the inspectors;

• checks documents;

• notifies the manager and lawyer;

• keeps an event log;

• coordinates the transfer of documents.

Employees must not independently provide documents or explanations on behalf of the company without defined authority.

2. Check the grounds and documents

Verify:

• the type of audit;

• the article and subparagraph of the Tax Code;

• the subject;

• the period;

• the address;

• the start date;

• the duration;

• the inspectors’ surnames.

3. Record the start of the audit

Write down:

• the date and exact time;

• the list of inspectors;

• details of the assignments;

• details of the order;

• comments on the documents;

• persons present on behalf of the business.

4. Do not expand the subject of the audit through verbal arrangements

All document requests should preferably be received in writing. If an inspector asks for documents unrelated to the subject, ask them to state the legal grounds and the connection with the audit.

5. Transfer documents in a controlled manner

Transfer copies:

• with a cover letter;

• under an inventory;

• indicating the number of sheets;

• with confirmation of acceptance.

6. Do not conceal or destroy information

After receiving an order, request or the start of an audit, electronic data must not be deleted, accounting records changed or documents destroyed. Lawful corrections must be transparent and properly documented.

7. Provide balanced explanations

Oral answers must not be based on assumptions. If it is necessary to check accounting records or documents before responding, it is advisable to state that the information will be provided after the data is checked.

8. Record procedural violations

Note down:

• going beyond the subject;

• demands without legal grounds;

• refusal to accept documents;

• violation of deadlines;

• incorrect data in the assignment or order;

• other procedural violations.

9. Read all documents before signing

Do not leave blank spaces. Check the number of pages and annexes. If you disagree, state this in writing.

10. Keep a complete set of materials

The audit file should include:

• the order;

• the assignment;

• the notice;

• requests;

• responses;

• inventories of transferred documents;

• audit reports;

• certificates;

• objections;

• notices of consideration;

• tax notices-decisions;

• proof of dispatch and receipt.

Audit report, objections and tax notice-decision

An audit report is not a final decision on tax payment. It sets out the circumstances and conclusions established by inspectors. A monetary liability or fine based on the audit results is determined by a tax notice-decision.

If an entrepreneur disagrees with the report, they have the right to submit:

• objections;

• additional documents;

• written explanations;

• evidence of mitigating circumstances;

• evidence of absence of fault or grounds for liability.

The general deadline for submitting objections is 10 working days from the day following receipt of the report. For certain special audits, the Tax Code may establish another deadline.

In the objections, it is advisable to set out separately:

1. procedural violations;

2. errors in factual circumstances;

3. incorrect application of legal rules;

4. incorrect calculations;

5. documents that were not taken into account;

6. your own calculation;

7. a request to cancel or change the conclusions.

The State Tax Service notifies the taxpayer of the place and time of consideration of the materials. Such notice is sent within two working days after receipt of the objections, but no later than four working days before consideration. The law provides for the possibility of participating by videoconference.

If objections are not submitted, the tax notice-decision is generally adopted within 10 working days from the day following service of the audit report. If objections are submitted, the decision is adopted under a special procedure after their consideration, including within five working days after the relevant conclusion of the commission.

Refusal to sign the report does not cancel it. It is often more appropriate to receive a copy of the report and indicate that the taxpayer disagrees with the conclusions and will submit objections within the established deadline.

Administrative and judicial appeal

A tax notice-decision or another decision of the State Tax Service may be appealed:

• administratively — to a higher-level controlling authority;

• in court.

A complaint to the State Tax Service is submitted within 10 working days following the day of receipt of the decision. Documents, calculations and other evidence may be attached to it.

A timely administrative appeal suspends enforcement of the appealed monetary liability for the period of complaint consideration. Until the administrative appeal is completed, the relevant amount is not considered agreed.

The complaint must separate:

• violations of the audit appointment procedure;

• violations of the admission and conduct procedure;

• going beyond the subject;

• incorrect assessment of documents;

• incorrect application of legal rules;

• errors in calculations;

• absence of grounds for a fine.

The deadline for applying to an administrative court depends on the method of prior appeal and the nature of the claims. It must be determined separately under the Tax Code and the Code of Administrative Procedure of Ukraine, without delaying preparation of the claim.

Practice of the Supreme Court

In its ruling of February 21, 2020 in case No. 826/17123/18, the Supreme Court formulated an approach important for business: even if a taxpayer admitted inspectors to an audit, this does not deprive the taxpayer of the right, when appealing a tax notice-decision, to refer to violations of the procedure for appointing or conducting the audit. Courts must assess such procedural arguments before moving on to examine the substance of tax assessments.

This does not mean that any formal violation automatically cancels the audit results. It is necessary to prove the specific violation and its legal significance.

A tax audit is not a search

A tax audit must not be equated with a search in criminal proceedings.

During an ordinary tax audit, inspectors act under the Tax Code. They do not conduct a search and do not have the right to seize originals of accounting and primary documents, except in cases carried out under criminal procedure rules.

A search is conducted under the Criminal Procedure Code. As a general rule, entry into housing or other possession and conducting a search requires a court decision. Article 233 of the Criminal Procedure Code provides separate urgent exceptions. The procedure for executing a search warrant is defined by Article 236.

In case of a search, a business must:

1. immediately notify a lawyer;

2. check the court ruling, address, validity period and limits of the permitted search;

3. demand that the lawyer be admitted;

4. not physically resist;

5. control the inventory of seized property;

6. record serial numbers of equipment;

7. state objections in the protocol;

8. obtain proper copies of procedural documents.

To protect assets and business continuity, a company should have protected data backups, equipment records with serial numbers, a disaster recovery plan and defined contacts of the lawyer and responsible managers in advance.

Final business readiness checklist

Before an audit, make sure that:

• the company or individual entrepreneur has been checked in the current schedule of the State Tax Service;

• the tax address and details are up to date;

• all tax declarations have been submitted;

• reporting data corresponds to accounting records;

• primary documents form a complete transaction chain;

• documents are stored for the established periods;

• contracts, delivery notes, acts and payments are consistent;

• the origin and movement of goods are confirmed;

• warehouse balances correspond to accounting records;

• premises are formalised by proper agreements;

• Form No. 20-OPP has been submitted submitted for all necessary objects;

• addresses in Form No. 20-OPP, RRO/PRRO, licences and contracts match;

• RRO/PRRO are registered and operate correctly;

• fiscal receipts contain all mandatory details;

• employees are formalised before actual admission to work;

• licences are valid, payments have been made and information is up to date;

• documents on excisable goods and marking comply with the law;

• a person responsible for interaction with the State Tax Service has been appointed;

• documents are transferred only under an inventory;

• backup copies of accounting data have been checked;

• the manager, accountant, lawyer and responsible employees know the procedure.

Official sources

1. Tax Code of Ukraine dated 02.12.2010 No. 2755-VI — Articles 20, 42, 44, 56, 75–86, 102, 121; subparagraphs 69.22, 69.28, 69.35¹ of subsection 10 of section XX.
   https://zakon.rada.gov.ua/laws/show/2755-17

2. Schedule of scheduled documentary audits of taxpayers for 2026, State Tax Service of Ukraine.
   https://tax.gov.ua/diyalnist-/plani-ta-zviti-roboti-/1024987.html

3. Order of the Ministry of Finance of Ukraine dated 02.06.2015 No. 524 «On approval of the Procedure for forming the schedule of scheduled documentary audits of taxpayers».
   https://zakon.rada.gov.ua/laws/show/z0751-15

4. Order of the Ministry for Communities and Territories Development of Ukraine dated 28.02.2025 No. 376 «On approval of the List of territories where hostilities are/were conducted or temporarily occupied by the Russian Federation».
   https://zakon.rada.gov.ua/laws/show/z0380-25

5. Law of Ukraine dated 06.07.1995 No. 265/95-VR «On the use of registrars of settlement transactions in the field of trade, public catering and services» — Articles 3, 9, 10, 17.
   https://zakon.rada.gov.ua/laws/show/265/95-%D0%B2%D1%80

6. Order of the Ministry of Finance of Ukraine dated 21.01.2016 No. 13 «On approval of the Regulation on the form and content of settlement documents/electronic settlement documents…» — sections I–II of the Regulation.
   https://zakon.rada.gov.ua/laws/show/z0220-16

7. Order of the Ministry of Finance of Ukraine dated 09.12.2011 No. 1588 «On approval of the Procedure for accounting of taxpayers and fee payers» — section VIII, Form No. 20-OPP.
   https://zakon.rada.gov.ua/laws/show/z1562-11

8. Labour Code of Ukraine dated 10.12.1971 No. 322-VIII — Articles 24, 265.
   https://zakon.rada.gov.ua/laws/show/322-08

9. Resolution of the Cabinet of Ministers of Ukraine dated 17.06.2015 No. 413 «On the procedure for notifying the State Tax Service and its territorial bodies of the hiring of an employee…».
   https://zakon.rada.gov.ua/laws/show/413-2015-%D0%BF

10. Law of Ukraine dated 18.06.2024 No. 3817-IX «On state regulation of production and circulation of ethyl alcohol, alcohol distillates, alcoholic beverages, tobacco products, tobacco raw materials and liquids used in electronic cigarettes, and fuel» — licensing, accounting and control; Article 46.
    https://zakon.rada.gov.ua/laws/show/3817-20

11. Law of Ukraine dated 02.03.2015 No. 222-VIII «On licensing of types of business activity».
    https://zakon.rada.gov.ua/laws/show/222-19